Pricing Break-Even
How many units you must sell at this price before the fixed costs are covered.
Your numbers
Results
How it works
Break-even units = fixed costs ÷ (price − variable cost per unit).
Every unit contributes price − variable cost toward the fixed bills — rent, salaries, tools — that arrive whether you sell or not. Break-even is the point where accumulated contribution finally covers them; before it, every month ends in the red no matter how busy you look.
The classic mistake is testing a price cut without redoing this math. Contribution is a difference, so it moves faster than price: dropping a $40 price by 10% cuts a $25 contribution by 16%, and your break-even volume jumps accordingly. Run the slider before you run the discount.
Worked example
You charge $40 with $15 of variable cost, so each sale contributes $25. Against $10,000 of monthly fixed costs, break-even = $10,000 ÷ $25 = 400 units, or $16,000 of revenue. Cut the price to $36 and contribution falls to $21 — break-even jumps to 477 units for a 10% discount.